With global oil prices topping $100 a barrel and diesel now costing more than gasoline, South Korea’s freight industry is warning of mounting strain. Since March 6, diesel has been priced above gasoline, raising concerns that many truckers could be forced to stop operating. Any widespread halt would likely disrupt logistics and push up distribution costs, adding to pressure on households.
According to the Korea National Oil Corp.’s Opinet price system, as of 10 a.m. March 9 the nationwide average diesel price was 1,920 won per liter, 22 won higher than gasoline at 1,898 won. In Seoul, diesel averaged 1,970 won per liter, nearing 2,000 won, and some stations have already posted prices in the 2,000-won range.
Industry officials say the situation risks echoing the urea-solution shortages of 2021 and 2023, when trucks were sidelined in large numbers. At the time, the government even used military transport aircraft to rush in emergency supplies to keep freight moving.
The Cargo Truckers Solidarity Division said the current spike in fuel prices directly cuts into drivers’ income. Park Jae-ha, the group’s policy director, said freight rates are typically split roughly into thirds: fuel, vehicle maintenance and driver income. "When oil prices surge, freight rates stay the same but fuel costs rise, so income drops sharply," he said. Park added that members have recently reported monthly fuel bills rising by 1.3 million to 1.4 million won, calling it "a situation where the more you work, the more you lose."
Park said a safety freight-rate system that links fuel prices and rates applies only in part and covers about 6% of all cargo trucks. That leaves 94% of freight workers fully exposed to fuel-price spikes, he said.
Gas stations are also under pressure. Many receive fuel from refiners in advance and settle payments later, a structure that can deepen losses when prices rise. While the government has signaled a willingness to intervene, including by mentioning a review of setting a maximum price, diesel wholesale costs are still climbing, according to industry officials.
Some in the industry say diesel supply prices could rise to about 2,300 won per liter. A gas station official said fuel brought in during February was settled on March 9 at 1,520 won per liter, but the refiner notified the station that the next settlement could be set around 2,300 won. For now, stations are selling stockpiled inventory and keeping prices below 2,000 won per liter, but once reserves run out, they expect to have no choice but to post prices in the 2,000-won range. Most stations have already used up the volumes they secured in February.
* This article has been translated by AI.
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